Seplat Energy Plc · LSE:SEPL
Seplat Energy — Seplat Petroleum Development Company — H1 2016 Earnings Presentation
16 slides from Seplat Energy's earnings presentation, Jul 28, 2016
Slide 1: 2016 Half Yearly Results
2016 HALF YEARLY RESULTS 28 JULY 2016 1 2016 HALF YEARLY RESULTS PRESENTATION
Slide 2: Important Notice
IMPORTANT NOTICE DISCLAIMER FORWARD-LOOKING STATEMENTS This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Company's control and all o
Slide 3: Introduction
INTRODUCTION AUSTIN AVURU (CEO) 3 2016 HALF YEARLY RESULTS PRESENTATION
Slide 4: First Half 2016 Summary
FIRST HALF 2016 SUMMARY The shut-in and suspension of oil exports at the Forcados terminal means we have faced significant challenges in H1 • Working interest production 25,695 boepd in H1 down 21% year-on-year as a result of lower liquids production Continuity of gas production achieved throughout
Slide 5: Operations Update
OPERATIONS UPDATE STUART CONNAL (COO) 5 2016 HALF YEARLY RESULTS PRESENTATION
Slide 6: Production Update
PRODUCTION UPDATE H1 2016 PRODUCTION PERFORMANCE DRIVEN BY THIRD PARTY INFRASTRUCTURE DOWNTIME Average daily working interest production excluding unbudgeted downtime 50,000 • Average working interest production in H1 2016 Gas production 25,695 boepd (-21% year-on-year) 45,000 Oil & Condensate produ
Slide 7: Phase II Expansion of Oben Gas Processing Plant
PHASE II EXPANSION OF OBEN GAS PROCESSING PLANT ON TRACK TO GROW OVERALL GROSS PROCESSING CAPACITY TO A MINIMUM OF 525 MMSCFD BY YEAR END • Phase II expansion comprises installation of 3 x 75 MMscfd new processing modules (225 MMscfd aggregate processing capacity expansion) • New processing modules
Slide 8: Operations Update and H2 Priorities
OPERATIONS UPDATE AND H2 PRIORITIES 2016 WORK PROGRAMME AND PRIORITIES ADJUSTED TAKING INTO ACCOUNT CURRENT OPERATING ENVIRONMENT Liquid treatment facility crude quality upgrade • Aimed at achieving crude oil export specification on all barrels produced at OMLs 4, 38 & 41 • Will generate savings on
Slide 9: Finance Update
FINANCE UPDATE ROGER BROWN (CFO) 9 2016 HALF YEARLY RESULTS PRESENTATION
Slide 10: Financial Summary
FINANCIAL SUMMARY H1 2016 PERFORMANCE REFLECTS UNPLANNED THIRD PARTY INFRASTRUCTURE DOWNTIME US$ million H1 2016 H1 2015 Y-o-Y H1 2016 H1 2015 Revenue 143 248 -42% Gross Oil Sales 50 136 Net hedging revenue 10 - Cost of sales (84) (139) -40% (Over)/Under-lift 36 85 Gross profit 59 109 -46% Gas sales
Slide 11: Financial Summary
FINANCIAL SUMMARY US$ million H1 2016 H1 2015 Y-o-Y • Total debt servicing in H1 2016 was US$163 Capex incurred 17 68 -75% million comprising US$122 million of principal and US$41 million of interest Cash flow before w/c 42 92 -54% • Seven year facility has a sculpted repayment Cash flow after w/c 4
Slide 12: Cash Reconciliation
CASH RECONCILIATION UNDERPINNED BY A ROBUST CAPITAL STRUCTURE 500 2 450 17 42 400 82 122 350 300 15 22 US$ million 26 250 66 200 326 150 100 180 50 0 Cash at Deposit for Funds flow Working capital PP&E Loan Net interest Dividend Other Deposit for Cash at 31/12/15 investment from movement repayments
Slide 13: Capital Expenditures Incurred
CAPITAL EXPENDITURES INCURRED DISCRETION MAINTAINED OVER SPEND AND FLEXIBILITY TO ALIGN WITH CASH FLOW 350 US$321 million 300 39 250 54 US$230 million 2016 FY guidance of 44 200 US$130 million to be re-set US$ million when force majeure is lifted and exports resume US$152 million 150 at the Forcados
Slide 14: NPDC Receivables
NPDC RECEIVABLES PROGRESS MADE TOWARDS ADDRESSING THE NPDC RECEIVABLES BALANCE NPDC RECEIVABLE BALANCE AS AT 30 JUNE 2016 • Pursuant to the agreement signed in July 2015 US$ million Seplat has continued to withhold and offset gas revenues attributable to NPDC’s 55% interest Headline receivable at st
Slide 15: Summary
SUMMARY • Focus on expanding gas business and creating long term alternative export routes for monetising liquids to address downtime • Manage liquidity by controlling discretionary work programme. Discussions underway with lenders to re-profile the principal repayments on the term facility • Ongoin
Slide 16: Head Office
Head Office Seplat Petroleum Development Company plc Address: 25A, Lugard Avenue, Ikoyi, Lagos, Nigeria Phone: +234 1277 0400 Email: info@seplatpetroleum.com ir@seplatpetroleum.com Web: www.seplatpetroleum.com London Office Seplat Petroleum Development Company plc Address: 4th Floor, 50 Pall Mall, L
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